Sunday, April 20, 2008

Switch into the Wealth Accumulator account

Hi Mr. Tan,

I have a lot of money invested in NTUC's combined fund. Will it be better for me to switch my investment into the low cost investment fund that it becomes available, i.e. the Wealth Accumulator account?

REPLY

I expect a new life insurance company will introduce the Wealth Accumulator plan in 6 to 12 months time. As it will have no front-end charge, you can switch from any existing fund or unit trust, at no switching cost.

You will benefit from the lower expense ratio of the low cost investment fund. The difference could be 0.5% to 2% for each year of investment. You may be able to get 5% to 40% more, over 10 to 20 years, by switching.

I hope that you will also be able to enjoy better customer service from the new company, as it will have a new computer system and call center to serve the customers better.

You can wait for details to be announced, before you make this decision.
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2 comments:

Anonymous said...

Yes, surrender your policies and move to the new company. NTUC is playing plum pudding with your policies now.
It is not safe anymore. Your policies risk being changed just like what is happening to those who bought many years ago.
Do you know your policy bonus will be reduced? Do you know that you have to wait for long time before they pay you and which may not happen .This is
uncertainty and this is risk.

April 20, 2008 1:54 PM
Anonymous said...

My agent is not happy and he thinks
we should report to MAS about reducing our bonus. What do you think?

April 20, 2008 9:45 PM

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